Will expansion of the Canadian Pension Plan benefit all seniors?

VANCOUVER (NEWS 1130) – Will expansion of the Canadian Pension Plan really help all Canadians in their retirement?

The Fraser Institute doesn’t think so.

The federal government is looking at increasing the amount Canadians pay into CPP, so they’ll receive higher benefits when they retire.

But Charles Lammam who authored a study for the Fraser Institute points out widows and divorced seniors won’t benefit.

“For the small share of seniors who are financially vulnerable in retirement, they do not currently receive any benefits from the CPP because they have minimal or limited work history.”

He found half of single seniors living alone who have no income from the CPP experience low income.

“Single seniors living alone are about three times more likely than seniors in general to experience low income. Unfortunately, because they don’t receive CPP payments, they are not going to be helped by expansion of the program.”

Plus Lammam says an increase in CPP payments for some seniors could be counterproductive, if they trigger clawbacks from other benefits.

The solution for very vulnerable seniors, Lammam suggests, is to augment programs already in place to help them, like the Guaranteed Income Supplement.

Top Stories

Top Stories

Most Watched Today